“The Dow vigilantes have managed to get both a Powell put and a Trump put for the market,” said Ed Yardeni, lead strategist at his namesake research firm. “Jerome Powell turned into Santa Claus last Wednesday, markets certainly reacted joyously to his hints that Fed tightening would occur at an even more gradual pace. So if Jerome Powell is Santa Claus, then the two elves are President Trump and President Xi.”

But the Grinch just took that all away... From Friday's close...

On the day, Trannies worst day since Brexit, but it was all a disaster...

Dow down 800 points!

The S&P stalled at 2800 once again and completed a triple top of lower highs...

All major indices crashed back below their key technical support levels...

But if Cyclicals (rel to Defensives) are right, 30Y Yields have a long way to go...

And Long Bond futures broke back above their 200DMA...

The yield curve collapsed too with 2s5s, 3s5s inverted and 2s10s into single-digits...

All of which brought out a herd of asset-gatherers and commission-takers to explain how this is a dip, not an inversion... or that it's different this time because of central bank intervention... not it is not!!

And the Eurodollar curves are now pricing in an extremely dovish trajectory...